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Consignment Stock and Journal Entries Analysis

The document outlines the calculations for abnormal loss, unsold stock, and the value of unsold stock related to a consignment transaction. It includes detailed journal entries for Rashed's accounts, reflecting various transactions such as goods sent, expenses, sales, and commissions. The final figures indicate a total of 1,25,006 Taka for stock on consignment and various debits and credits in the accounts.

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tetromew
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2 views3 pages

Consignment Stock and Journal Entries Analysis

The document outlines the calculations for abnormal loss, unsold stock, and the value of unsold stock related to a consignment transaction. It includes detailed journal entries for Rashed's accounts, reflecting various transactions such as goods sent, expenses, sales, and commissions. The final figures indicate a total of 1,25,006 Taka for stock on consignment and various debits and credits in the accounts.

Uploaded by

tetromew
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Problem 3 Solution

1. Calculation of Abnormal Loss


Cost of 100 bags @ Tk. 400 40000
Add: Proportion of non-recurring expenses paid by Rashed
(30,000/1600)x 100 1875
41875
2. Calculation of unsold stock (Unit) Bags
Goods Sent 1600
Less: Damaged in transit 100
Cement received by Raihan 1500
Sold (80% of 1500) 1200
300
Less: Normal Loss 5
Closing Stock Units 295

3. Calculation the value of unsold stock


Cost of 295 bags @ Tk. 400 118000

Add: Proportion of non-recurring expenses paid by Rashed


(30,000/1600)x 295 5,531

Add: Proportion of non-recurring expenses paid by Raihan


(7500/1500) x 295 1475
125006

Journal Entries in the Books of Rashed


Date Par�culars J.F. Dr. Taka Cr. Taka
1. Consignment Account 6,40,000
Goods sent to consignment Account 6,40,000
2. Consignment Account 30,000
Bank Account 30,000
(Paid railway freight and carriage)
3. Abnormal Loss Account*1 41,875
Consignment Account 41,875
4. Bank Account 32,000
Profit and Loss Account 9,875
Abnormal Loss Account 41,875
5. Raihan Account 20,500
Consignment Account 20,500
(Paid carriage, rent of godown, and Salesman
salary by consignee)
6. Raihan Account 6,00,000
Consignment Account 6,00,000
(Sales of goods by consignee)
7. Consignment Account 45,000
Raihan Account 45,000
(Commission)
8. Stock on Consignment Account *3 1,25,006
Consignment Account 1,25,006
9. Consignment Account 31,381
Profit and Loss Account 31,381
10. Goods sent on Consignment Account 6,40,000
Trading Account 6,40,000
( Tranfer)
11. Bank Account 5,34,500
Raihan Account 5,34,500

Consignment Account
Dr. Cr.
Date Particulars J.F. Taka Date Particulars J.F. Taka
Goods sent to 6,40,000 Abnormal Loss Account 41,875
consignment Account
Bank Account 30,000 Raihan Account (Sales) 6,00,000
( Expenses)
Raihan Account 20,500 Stock on Consignment 1,25,006
( Expenses) Account
Raihan Account 45,000
(Commission)
Profit and Loss 31,381
Account (b/f)
7,66,881 766,881

Abnormal Loss Account


Dr. Cr.
Date Particulars J.F. Taka Date Particulars J.F. Taka
Consignment Account 41,875 Bank Account 32,000
Profit and Loss Account (b/f) 9,875
41,875 41,875
Raihan Account
Dr. Cr.
Date Particulars J.F. Taka Date Particulars J.F. Taka
Consignment Account 6,00,000 Consignment Account ( 20,500
( Sales) expenses)
Consignment Account ( 45,000
Commission)
Bank Account ( remit)b/f 5,34,500
6,00,000 6,00,000

Goods sent to consignment Account


Dr. Cr.
Date Particulars J.F. Taka Date Particulars J.F. Taka
Consignment Account 6,40,000 Trading Account ( transfer) 6,40,000
( Sales)
6,40,000 6,40,000

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